Yesterday the USDJPY moved solidly higher after reports denied that President Trump would dismiss FRB Chair Jerome Powell, leading to dollar buying. The price reached a low of 147.72 shortly after the opening and then traded firmly.

Strong U.S. economic data, including June retail sales released at GMT 12:30, pushed the price to a high of 149.09, though it quickly retreated. Trading for the day closed at 148.48.

Today the USDJPY hit a low of 148.29 around GMT 00:00 [previous day] on dollar selling after FRB Governor Christopher Waller expressed support for a July rate cut. The price has since recovered and is trading solidly in the upper 148-yen range as of GMT 05:00.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on July 18), it shows sideways movement after volatile swings subsided, making it difficult to determine a clear direction.

(20-period Bollinger Band, showing ±1 and ±2 standard deviations)

The main economic indicators for today are as follows:

• GMT 12:30 U.S. June Housing starts
• GMT 12:30 U.S. June Building permits
• GMT 14:00 U.S. July Michigan Consumer Sentiment, preliminary